The BBC's Judith Moloney"Ehud Barak's hopes of a peace deal before Israeli's go to the polls are now dead" real 56kPolitical Commentator, Helen Davis"It seems for the moment that the gulf is unbridgeable" real 56k

Monday, 29 January, 2001, 15:58 GMT

Barak election hopes fade

Neither leader has much to smile about now

Israeli Prime Minister Ehud Barak is facing an uphill struggle for re-election after ruling out any further attempt to clinch an 11th-hour peace deal with the Palestinians.

Such a deal has been widely seen as Mr Barak's only hope of reversing the downward trend in his poll ratings before the 6 February prime ministerial election.

To make matters worse for Mr Barak, a public sector strike is now entering its second week in Israel, and rubbish has been piling up on the streets.

The BBC Jerusalem correspondent says there is significant support for Shimon Peres to take his place as the Labour Party's prime ministerial candidate - but Mr Barak has vowed that he will not stand down.

We don't want a breakdown in the peace process. We will continue with the peace process despite the difficulties we are facing

Yasser Arafat

She says that, if Mr Sharon wins the elections, he will take a much harder line on the Palestinians and offer them far fewer concessions.

Violence has meanwhile continued in the West Bank and Gaza Strip.

An Israeli civilian was shot dead in his car on a road between Jerusalem and the Palestinian city of Ramallah.

The Israeli military said the man, in his 50s, was shot from a passing car. His name was not immediately released.

Earlier, a Palestinian was shot dead by Israeli troops in the Gaza Strip.

Israeli military officials said the Palestinian was aiming a gun at the soldier who shot him.

Palestinian officials said Israeli troops also "abducted" five Palestinians on Monday near the Jewish settlement of Netzarim in the Gaza Strip.

More than 350 people have been killed in the violence which erupted in September - the majority of them Palestinians.

Arafat attack

Mr Barak's decision to call off any further peace talks with the Palestinians until after the election followed a vitriolic speech by the Palestinian leader, Yasser Arafat, at the World Economic Forum in Davos, Switzerland.